Bank Promotion Exam Practice Tests Set 5

Your branch proposes to sanction loan to a retail trader for the commodities which are not covered by the definition of essential commodities. What is the maximum amount of loan that could be sanctioned to the borrower under priority sector:  


Options are :

  • Rs.3 lac
  • Rs.5 lac
  • Rs.10 lac
  • Rs.20 lac

Answer :Rs.20 lac

Which of the following is correct


Options are :

  • Ghosh committee recommendations-relating to frauds and malpractices in banks
  • Jilani committee recommendations-relating to internal inspection/audit in banks
  • Both the committee recommendations are –related to Anti money laundering
  • 1 & 2

Answer :1 & 2

Bank Promotion Exam Practice Tests Set 6

A letter of credit is silent about the currency in which the insurance is to be obtained. In which of the following will it be obtained?  


Options are :

  • Indian rupees
  • Euro
  • US Dollar
  • Pound
  • currency of the letter of credit

Answer :currency of the letter of credit

In the Case of Certificate of deposits ,which is incorrect


Options are :

  • duplicate CD can be issued
  • duplicate CD does not attract stamp duty
  • an indemnity is to be obtained
  • notice to be given in local newspaper before issuance of duplicate
  • none of the above

Answer :none of the above

MR Q has hired a locker on 14-04-2015 and he gives a power of attorney to his daughter aged 12 years. the bank


Options are :

  • will accept
  • will not accept because she is a minor
  • will not accept as power of attorney is not allowed in locker

Answer :will accept

Bank Promotion Exam Practice Tests Set 1

Which of the following confers on the trustees, the power to obtain loan:  


Options are :

  • Trust deed
  • Trust deed writer
  • Beneficiary
  • resolution from the trustees
  • Commissioner of Charity

Answer :Trust deed

MR S is having saving account. MR w is the power of attorney holder. MR S comes to the branch on 10-02-2015 and revokes the power of attorney . A cheque dated  05-02-15 favouring “ High court ,mumbai “ is presented in clearing signed by MR W after 10-02-15. now you will


Options are :

  • return the cheque
  • pass the cheque as it is issued prior to date of revocation
  • pass it otherwise it will be contempt of court
  • pass it after re confirming from MR R

Answer :return the cheque

A cheque is dated --/05/15,and presented for payment  on  31/05/15 which is otherwise in order. You will


Options are :

  • honour the cheque as 31st is the last day of month
  • return it as it is incomplete date
  • put the date stamp and pass it
  • cash payment can not be made and it can be presented in clearing

Answer :return it as it is incomplete date

Bank Promotion Exam Practice Tests Set 10

Under interest subvention scheme for Agricultural Advances, farmers receive short term credit at _______% 


Options are :

  • 8
  • 7
  • 6.5
  • 7.5

Answer :7

The upper limit of Rs._______ on the princi pal amount is allowed under interest subvention scheme for Agricultural Advances, is  


Options are :

  • 2,00,000
  • 3,00,000
  • 5,00,000
  • 4,00,000

Answer :3,00,000

A company’s registered office is in Chennai, and its factory is at Bangalore. The company availed a bank loan in Mumbai.  Equitable mortgage of company’s immovable property is to be created at


Options are :

  • Chennai
  • New Delhi
  • Mumbai
  • Any notified centre

Answer :Any notified centre

Bank Promotion Exam Practice Tests Set 11

How many review of the Annual Policy Statement (Credit Policy) are made by RBI and when:  


Options are :

  • One, during October
  • two, during April and October
  • Three, during July / October / January
  • Four, during April, July, Oct & Jan
  • None of the above

Answer :Three, during July / October / January

As per the loan delivery system recommended by Jilani Committee, the borrowers are required to split their fund based working capital limits or MPBF into:  


Options are :

  • term loan and bills
  • demand loan and cash credit
  • working capital demand loan and cash credit
  • cash credit and bills
  • term loan and cash credit

Answer :working capital demand loan and cash credit

Which of the following is garnishee under a Garnishee Order?


Options are :

  • Judgement Creditor
  • Judgement Debtor
  • Bank
  • None

Answer :Bank

Bank Promotion Exam Practice Tests Set 12

A Negotiable Instrument can be endorsed by signing the same on:


Options are :

  • A slip of paper annexed to the instrument
  • The back there of
  • Face thereof
  • The back or face thereof or on a slip of paper annexed there to

Answer :The back or face thereof or on a slip of paper annexed there to

The short term production loans  disbursed during ___________ season with credit limit of Rs. __________ is eligible  uder interest subvention scheme for Agricultural Advances.  


Options are :

  • Rabi only Rs. 3,00,000
  • Kharif and Rabi, Rs. 2,00,000
  • Kharif and Rabi, Rs. 3,00,000
  • Kharif only Rs. 3,00,000

Answer :Kharif and Rabi, Rs. 3,00,000

A cheque with amount in words written as rupees five thousand is presented but the amount in figures is not stated. The payee insists on immediate payment:  


Options are :

  • cheque can be paid after consulting the drawer only
  • cheque can be paid after obtaining indemnity from the payee and the drawer
  • cheque can be paid for amount in words u/s 18 of Negotiable Instrument Act
  • cheque being Inchoate Instrument cannot be paid
  • none of the above

Answer :cheque being Inchoate Instrument cannot be paid

Bank Promotion Exam Practice Tests Set 13

When an order cheque is endorsed in blank:


Options are :

  • Its further negotiation is restricted
  • It becomes payable to bearer and transferable by mere delivery
  • It loses the characteristic of negotiability
  • None of these

Answer :It becomes payable to bearer and transferable by mere delivery

The banks are required to submit the subvention claim to RBI on _______ basis


Options are :

  • Quarterly basis
  • Half yearly basis
  • Monthly basis
  • Yearly basis

Answer :Half yearly basis

The following accounts are not eligible under interest subvention scheme for Agricultural Advances  


Options are :

  • Produce Marketing loans
  • Agricultural term loan
  • Agricultural cash credit
  • Kissan Credit card

Answer :Produce Marketing loans

Bank Promotion Exam Practice Tests Set 14

A bearer cheque has been drawn in favour of Mrs. Durani, who wants to negotiate it further. How she will endorse the cheque


Options are :

  • Durani (Mrs.)
  • Mrs. Durani
  • Mrs. Durani
  • Any of above
  • NOA.

Answer :NOA.

Which among the following is the most appropriate crossing to consider it a `special crossing’?  


Options are :

  • Pay X through his bank’ within two transverse lines
  • Payee’s account through his bank without transverse lines
  • Name of the bank without transverse lines
  • Name of the bank within transverse lines
  • c and d

Answer :c and d

Crop loans may be sanctioned to meet A. Cultivation expenses B. Harvesting expenses C. Marketing of crops D. Consumption needs of the farmer  


Options are :

  • A,B,C & D
  • A & B only
  • A,B, & C only
  • A,C &D only

Answer :A,B,C & D

Bank Promotion Exam Practice Tests Set 15

When an endorser adds the words “Notice of dishonour waived” such an endorsement is known as:


Options are :

  • Restrictive endorsement
  • Conditional endorsement
  • Facultative endorsement
  • Partial endorsement

Answer :Facultative endorsement

Who is incompetent to endorse a negotiable Instrument?


Options are :

  • Minors
  • Married women
  • Illiterate
  • None of these

Answer :None of these

Kharif period is between ___ and _____  


Options are :

  • October to April
  • June to November
  • July to December
  • September to March

Answer :July to December

Bank Promotion Exam Practice Tests Set 16

Rabi period is between ______ and ______  


Options are :

  • September to March
  • June to November
  • October to April
  • July to December

Answer :October to April

Which among the following is provided u/s 22 of Negotiable Instrument Act in the context of a Bill of Exchange:  


Options are :

  • drawee to be permitted 48 hours for acceptance of the bill
  • drawee can accept the bill by signing on the face of the bill
  • presentation of the bill should be at the business place of the drawee
  • drawee can be allowed 3 days of grace for making payment
  • drawee can make the payment on next preceding business day if the payment falls due on a holiday

Answer :drawee can make the payment on next preceding business day if the payment falls due on a holiday

An “endorsement in blank” means the endorsement:


Options are :

  • Of a blank instrument
  • Of an inchoate instrument
  • Which does not have any endorsee but merely consists of the signature of the endorser written on the instrument
  • None of these

Answer :Which does not have any endorsee but merely consists of the signature of the endorser written on the instrument

Bank Promotion Exam Practice Tests Set 17

What is the maximum number of endorsements that are allowed on a Negotiable Instrument?


Options are :

  • One
  • Two
  • Five
  • No limit

Answer :No limit

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